Iranian President Ahmadinejad said Wednesday, Army Day, that Iran wants peace and stability in the Middle East but would decisively confront aggressors.

"Iran is an advocate of regional and global peace, but our armed forces are at the same time ready to sacrifice themselves and decisively stand against any aggression by the enemies," Ahmadinejad said in an address in Tehran to commanders of the army and paramilitary revolutionary guards.

"Iran is no threat to any nation, but if forced, our forces would cut the hands of aggressors and make them regret their aggression," Ahmadinejad said.

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Tehran is embroiled in a row with the West over its nuclear ambitions. The United States, which says Iran is trying to build an atomic bomb, has said it wants a diplomatic resolution to the standoff but has not ruled out military action if that fails.

Iran, the world's fourth largest oil exporter, insists it is does not seek a nuclear weapon and says it wants to master nuclear technology so it can generate electricity.

"Our army is self sufficient ... and is at the service of peace, brotherhood and security in the region," the president said in the televised address, describing Iran's armed forces as a defensive rather than offensive force.

"We are after friendly ties with all nations and governments except the illegal Zionist regime," said Ahmadinejad, referring to Israel and staying in line with the state policy that rejects Israel as a sovereign state.

Wednesday's military parade was held near the tomb of Ayatollah Ruhollah Khomeini, the founder of the Islamic Republic. Close by are tens of thousands of graves of those who died in the 1980-1988 Iran-Iraq war.